Investment Rating - The report maintains a "Buy" rating for Great Wall Motors with a target price of HKD 16, indicating a potential upside of 34% from the current price of HKD 11.9 [1][3]. Core Insights - Great Wall Motors reported Q1 2024 revenue of RMB 42.86 billion, a year-on-year increase of 47.6%, and a net profit of RMB 3.23 billion, reflecting a significant year-on-year growth of 1752.6% [2]. - The company benefits from increased sales of high-priced models such as the Tank series and exports, contributing to a record performance for the quarter [1][2]. - The gross margin for Q1 2024 was 20.0%, up by 4.0 percentage points year-on-year, driven by higher unit revenue of RMB 156,000, which is an increase of RMB 24,000 year-on-year [2]. Sales Performance - In April 2024, Great Wall Motors sold 95,000 vehicles, a year-on-year increase of 1.8%, with cumulative sales from January to April reaching 370,000 units, up 18% year-on-year [2]. - The sales performance varied by brand, with Haval brand sales declining by 10%, while WEY and Tank brands saw significant increases of 87.7% and 87.5% respectively [2]. Marketing Strategy - Great Wall Motors is undergoing a major transformation in its marketing strategy, opening 33 direct retail centers in key cities, with plans to expand to 200 by the end of the year [2][3]. - This shift aims to enhance brand visibility and customer service by integrating direct sales with the existing dealer network [2].
Q1业绩超预期，营销渠道大变革